FICA

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What is FICA?

Back

FICA stands for the Federal Insurance Contributions Act, which is a U.S. law that mandates a payroll tax to fund Social Security and Medicare.

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What percentage of gross pay is deducted for Social Security?

Back

6.2% of gross pay is deducted for Social Security.

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CCSS.6.RP.A.3C

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What percentage of gross pay is deducted for Medicare?

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1.45% of gross pay is deducted for Medicare.

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CCSS.6.RP.A.3C

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If Randall has a weekly paycheck of $355.25, how much Social Security would be withheld?

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$22.03 is withheld for Social Security from Randall's paycheck.

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CCSS.6.NS.B.3

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If Randall has a weekly paycheck of $355.25, how much Medicare would be withheld?

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$5.15 is withheld for Medicare from Randall's paycheck.

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CCSS.6.RP.A.3D

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What is the total FICA tax rate for employees?

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The total FICA tax rate for employees is 7.65%, which includes 6.2% for Social Security and 1.45% for Medicare.

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CCSS.6.RP.A.3B

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What is the purpose of Social Security?

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Social Security provides financial assistance to retirees, disabled individuals, and survivors of deceased workers.

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What is the purpose of Medicare?

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Medicare provides health insurance for individuals aged 65 and older, as well as certain younger individuals with disabilities.

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How is the Social Security tax calculated?

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The Social Security tax is calculated by multiplying the gross pay by 6.2%.

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CCSS.7.RP.A.3

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How is the Medicare tax calculated?

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The Medicare tax is calculated by multiplying the gross pay by 1.45%.

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CCSS.7.RP.A.3